The Benefits of Online Financing for Small Businesses
Small business owners may be skeptical of the new wave of business financing options that have been trending as of recently. If you have ever looked up “business loans”, “working capital” or “small business financing” online, you may have come across a new breed of business lenders that are not traditional banks known as alternative lending brokerages. Alternative lending brokers often seem mysterious and somewhat risky when compared to traditional lenders like banks. But fear not – many alternative lenders are business owners just like you, and truly want to help your business (and make some money in the process). Working with an alternative lender may actually be more beneficial to your small business than working with a traditional lender such as a bank. It’s extremely important to find a team you can trust, that offers transparency and service and treats your business the way you want it to be treated.
Advantages of Working with an Alternative Lender
Your business may have come across an alternative lender if your business had previously been denied funding from a traditional lender such as a bank. Banks have a strict process for qualifying businesses for loans that are often very hard to follow. This means many businesses may not meet the criteria to qualify for any bank financing. On the other hand, alternative lenders may be more willing to work with businesses that banks consider too risky. Some alternative lenders even specialize in industries that the finance industry as a whole consider risks such as construction and automotive sales. An alternative lender that is willing to work with you can help your business to get the working capital that it needs.
Another benefit of working with an alternative lender is the speed in which they provide funding. Alternative lenders generally work much faster than traditional banks, and this can be very beneficial to small business owners who need the funding immediately.
Let’s say that you own a liquor store – it’s Wednesday and you need to place an order for products by Friday of this week in order to receive them on time. The order will cost you $30,000 to order, but you will make over $50,000 off of the products sold. You try to go to a bank, but they say the earliest they can get you funding is 2 to 3 weeks! If you work with the right alternative lender, they may be able to get you the funding you need the same day that you apply. The funding process with alternative lenders is also much simpler than it is with traditional banks. Generally, the only thing they require to underwrite a file is an application and your three most recent months of bank statements, saving you time and stress.
Leveraging Options to Get You the Best Deal
One of the biggest advantages of working with an alternative lending brokerage is the fact that they can get you multiple financing offers. If you decide to contact a traditional bank to secure funding for your business, you’ll go through the long and grueling process of applying, and you may be lucky if you qualify and get a single offer. Banks will offer you one take it or leave it an option, which is generally more beneficial to the bank than it is to the business. By working with an alternative broker such as REIL Capital, you have the ability to compare multiple funding options from lenders who oftentimes will send competing offers. The broker can then leverage those deals against one another to get your business a financing deal with the best terms possible for your business. Alternative lending brokerages only make money if your deal actually funds, so they will work with you to get you the best deal that they can possibly get you.
In conclusion, there are a lot of financing options for your small business out there, both traditional and alternative. Here at REIL Capital, we take pride in our customer service and are committed to finding you the best deal possible. If you want to find out more about how we can help your business get the financing it needs, fill out our commitment free application here.
